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Labor Contract Law of the People's Republic of China

(npc.gov.cn) Updated : 2015-08-17

Article 25 With the exception of the circumstances specified in Articles 22 and 23 of this Law, an employing unit shall not enter into an agreement with a worker on payment of penalty by the worker for breach of contract.

Article 26 A labor contract shall be invalid or partially invalid under one of the following circumstances:

(1) The labor contract is concluded or modified against a party’s true intention by means of deception or coercion, or when the party is in precarious situations;

(2) The employing unit disclaims its statutory responsibility or denies the worker his rights; or

(3) The labor contract is at variance with the mandatory provisions of laws or administrative regulations.

If a dispute arises over the invalidity or partial invalidity of a labor contract, the matter shall be determined by a labor dispute arbitration institution or a people’s court.

Article 27 If part of a labor contract is invalid, which does not affect the validity of the rest of the contract, the rest shall remain valid.

Article 28 If a labor contract is determined to be invalid but the worker has performed it, the employing unit shall pay the worker remuneration. The amount of remuneration shall be determined mutatis mutandis according to that for the workers holding the same or similar posts in the employing unit.

Chapter III

Performance and Modification of a Labor Contract

Article 29 An employing unit and a worker shall fully perform their respective obligations in accordance with the labor contract.

Article 30 The employing unit shall pay their workers remuneration on time and in full in accordance with the labor contract and the regulations of the State.

If an employing unit defaults in payment or underpays the labor remuneration, the worker concerned may, in accordance with law, apply to the local people’s court for an order for payment, and the people’s court shall issue such an order in accordance with law.

Article 31 The employing unit shall strictly implement the norm set for labor quota and shall not compel the workers to work overtime or do so in disguised form. If an employing unit arranges for a worker to work overtime, it shall give him overtime pay in accordance with the relevant regulations of the State.

Article 32 A worker shall not be deemed to be breaching the labor contract if he refuses to perform hazardous operations under instructions given in violation of rules and regulations or peremptorily given by a manager of the employing unit.

A worker shall have the right to criticize or report or lodge accusations against the employing unit in respect of the working conditions that endanger his life or health.

Article 33 Where an employing unit alters its name, replaces its legal representative, the principal leading person or investor(s), etc., performance of the labor contract shall not be affected.

Article 34 Where an employing unit is merged, divided, etc., the existing labor contract shall remain valid and continue to be performed by the employing unit which succeeds to its rights and obligations.

Article 35 An employing unit and a worker may modify the provisions of the labor contract, if they reach consensus on the matter through consultation. Modification of a labor contract shall be made in writing.

The employing unit and the worker shall each keep a copy of the modified labor contract.

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